Credit Denied

[zubbzubb96]

I applied for a new card and was sent the following reasons for the denial:
-BK reporting Credit Bureau file
-Serious deliq, derog PR, collection
-Number of accounts w/ deliquency
-Too few accts curr paid as agreed

I have been discharged about 2 1/2 years from Ch7. I have a mtg pmt which I have never missed. A car payment that is almost 2 years old - never late. A credit card with a small balance but never late. But it has a high interest rate and I'm trying to get a new card.

Given the reasons for the denial, should I do anything to try and clean up my credit? I understand the BK stays with you for 10 years but I'm asking if maybe I should do something with the reporting agencies for any of the other reasons but does that sound correct?

[Exployer1234]

Sometimes it takes awhile to be able to obtain credit after BK. Some creditors will not give you credit until 7-10 years.

[StartingOver08]

Actually, you can get credit before 7 to 10 yrs.

Check your actual credit reports from the three CRA's. Make sure the info is correct. Look at each tradeline that was included in the Bk. It should read iib (included in Bk) and zero balance. If you have a blank in the field it will impact your FICO score negatively.

Look at some of the rebuilder sites that specialize in rebuilding after BK for tips on which cards to apply for and which to stay away from after a BK. Which card denied you? Some of them do blacklist BK filers.

Some of the rebuilder sites include: www.creditinfocenter.com and www.myfico.com check in the forums section

[zubbzubb96]

I just looked at my credit report.
There were 12 Adverse Accounts. Only 2 had $0 balance. The rest were blank.
Most say: Included in Bankruptcy
Some say: Chapter 7 bankruptcy
Others say: Account closed by consumer/Chapter 7

[ForumReader]

To the OP,

If you don't mind me asking, what credit card company were you trying to apply for that got you declined? There are some bk friendly credit card companies that can give credit to consumers after bk.

[backtoschool]

Most prime credit cards are not going to award a credit card 2 years post bk, especially if you included them in your bankruptcy.

The credit card issuers that are particularly bk friendly are:

HSBC
Capital One
First Premier
Credit One
Hooter's (Merrick Bank)

You also could apply for a card at your credit union if you have a long standing relationship with them.

Another option is to get a secured card somewhere.

All of the above issuers are going to start you with small credit limits. Some like Capital One will raise the limits relatively quickly though if you use the card and pay on time. I started with one $1,000 Capital One card two weeks after discharge, and now have two Capital One cards, one with a $2,000 limit and one with a $1,500 limit. ( I have received two credit line increases on one of the cards, and just received a credit line increase on the other one) I am six months post discharge. I use the cards for everyday purchases, and pay the cards off in full every month.

All credit card companies are going to charge higher interest rates for posk bk customers in my opinion. The only way to avoid that would be to get a credit card from your credit union. Since credit union's are not-for-profit institutions, they charge lower rates on their cards.

[Charlie777]

Does it make a difference if you discharged a BK friendly Credit Card?

I was denied a secured Orchard Bank (owned by HSBC now) card after initial approval. They did their "soft pull" and approved me, then denied me off the "hard pull", I had discharged an HSBC Best Buy account. I was also denied a secured Citibank Credit Card, same deal, had discharged Citibank obligations.

What luck have people had getting unsecured or even secured cards with otherwise BK friendly lenders where the lender was a creditor just discharged in your BK?

I just passed six months from discharge.

[Amy26]

I would definately get your credit reports cleaned up. I was getting new credit just a few months after my bankruptcy. I was even able to have some things removed from my report.

If you have accounts with blanks, dispute it, if anything looks wierd or isn't listed as IIB or still has a balance, dispute it. I am finding the "public record" on my credit reports isn't hurting me as much as long as my scores are good and my reports are nice and tidy.

[teacher]

I was denied a secured Orchard Bank (owned by HSBC now) card after initial approval. They did their "soft pull" and approved me, then denied me off the "hard pull", I had discharged an HSBC Best Buy account. I was also denied a secured Citibank Credit Card, same deal, had discharged Citibank obligations.

What luck have people had getting unsecured or even secured cards with otherwise BK friendly lenders where the lender was a creditor just discharged in your BK?

I just passed six months from discharge.

It is actually worse. You kind of have to use common sense here. Even though HSBC is BK friendly, do you think they are going to want to lend money to someone who stiffed them? Although it does happen sometimes, it makes sense that they would deny you. You may wish to start with Merrick (hooters).